Report: Georgia factories busy, getting busier

Posted: Monday, August 01, 2005

ATLANTA - If the boss has finally become intolerable, now's a good time to look for another factory job in Georgia.

An economic report released Monday, the Georgia Purchasing Managers Index, shows continued optimism in the manufacturing sector, with the state besting the national index for the fifth month in a row. Based on a survey of 70 plant executives from across the state who buy supplies for future manufacturing, the index gauges current conditions and those over the next six months.

They reported increased production and the need to hire workers to keep it up. They also said they're not having to pay higher prices for their materials, a sign that inflation may not be a problem.

"The manufacturing sector seems to have weathered the $60-barrel price of crude oil and other related high energy prices," said Donald Sabbarese, author of the report and co-director of the Econometric Center at Kennesaw State University in Marietta. "Growing strength for the manufacturing sector is a good sign that should help sustain (gross domestic product) growth into the third quarter."

Sabbarese calculated the state's index at 63, topping the national index of 57. Generally, an index above 45 predicts growth for the manufacturing segment, and beyond 50 foretells growth in the economy as a whole.

In towns like Savannah, where 11 percent of the work force gets a factory paycheck, the report means continued good news for job seekers, but not necessarily for employers.

Martin Sullivan, owner of The Sullivan Group which includes a placement service, said his staff senses the pressure that employers are under.

"We're probably seeing the best market we've seen in the last few years," he said. "We've got a lot more orders than we do people."

Sullivan said factory jobs are plentiful, but so are those for supervisors, managers and clerical positions.

Monday's report is welcome news after last week's announcement that the unemployment rate in cities across the state had risen from May to June. But the unemployment figures are historical while the Purchasing Managers Index looks forward.

Georgia Labor Commissioner Michael Thurmond was quoted recently as attributing the state's unemployment rate - which is higher than the national rate for the first time in 16 years - to a steady influx of new job seekers to the state. According to the plant managers, there will be jobs for them over the coming months.